6
6 Inflationary pressures are forecast to remain subdued Core Inflation (Twelve-month change in the core CPI) 06200204 Jul. 10 08 For countries with a peg to the USD or euro, this means that higher inflation rates may lead to real appreciation.

17
Sources: National authorities; and Fund staff estimates and calculations. Government Fiscal Balance (Percent of GDP) Sources: National authorities; and Fund staff estimates and calculations. Government Non-oil Fiscal Balance (Percent of non-oil GDP)

18
Some countries continue to provide stimulus Sources: National authorities; and IMF staff estimates. MENAP Oil Exporters Percent change in total government expenditures in U.S. dollars (From 2008 to 2011)

24
Recovery Growth picking up Policy adjustment Can start consolidating fiscal positions In most cases, inflation not an immediate concern Medium term challenges More than 18 million new jobs required by 2020 Need to improve competitiveness and reorient trade

29
Dominique Strauss- Kahn: We must not underestimate the daunting prospects we face: a lost generation, disconnected from the labor market, with a progressive loss of skills and motivation. More than 18 million jobs needed MENAP Oil Importers AFP/ABDELHAK SENNA/Getty Images. Reprinted with permission. (Unemployed workers wait for a job in the Bani Makada quarter of Tangiers, Morocco on March 20, 2004.)